AngloGold Ashanti to Acquire Centamin in a $2.5 Billion Deal, Expanding Its Global Gold Mining Footprint
AngloGold Ashanti (JSE: ANG, NYSE: AU, ASX: AGG) is set to acquire its Egypt-focused rival, Centamin (LON: CEY), in a major $2.5 billion (£1.9 billion) cash and stock deal. This acquisition will propel the South African gold miner into becoming the world’s fourth-largest gold producer.
The strategic purchase gives AngloGold ownership of the Sukari mine in Egypt, the country’s largest and first modern gold mine, renowned for being one of the world’s top-producing gold assets.
Significant Boost to Gold Production and Future Potential
By adding the Sukari mine to its portfolio, AngloGold Ashanti is set to boost its annual gold production by approximately 450,000 ounces, bringing its total annual output to an impressive 3.1 million ounces. Since beginning operations in 2009, the Sukari mine has produced over 5.9 million ounces of gold and has an estimated mine life of 14 more years.
“This acquisition is a transformative step that builds on the strong foundation we’ve established,” said Jochen Tilk, AngloGold’s chair. “We are now positioned as the leading gold producer in Egypt, with significant geological potential that we are ideally placed to develop.”
Deal Terms and Shareholder Impact
According to the agreement, Centamin shareholders will receive 0.06983 new AngloGold shares for each Centamin share they hold, along with $0.125 in cash per share. This offer represents a 37% premium over Centamin’s closing share price on September 9. Once the deal is finalized, AngloGold shareholders will own about 83.6% of the newly combined company, while Centamin investors will hold roughly 16.4%.
AngloGold’s Strategic Shift Away from South Africa
AngloGold Ashanti, with mining assets across Australia, Brazil, and beyond, has been shifting its focus away from South Africa, where it was founded over a century ago. After selling its last South African asset to Harmony Gold in 2020, the company moved its headquarters to London and New York in 2023, reinforcing its global expansion strategy.
A Wave of Gold Mining Consolidations Amid High Gold Prices
The AngloGold-Centamin deal is the latest in a series of mergers and acquisitions in the gold mining industry, driven by record-high gold prices. Last year, Newmont (NYSE: NEM) acquired Australia’s Newcrest Mining for $19 billion, cementing its position as the world’s largest gold producer. Similarly, Agnico Eagle Mines (TSX, NYSE: AEM) has completed two significant deals since 2022, and South Africa’s Gold Fields (JSE, NYSE: GFI) recently acquired Canada’s Osisko Mining (TSX: OSK) for C$2.16 billion ($1.6 billion).
Challenges for the London Stock Exchange
This deal adds to the challenges faced by the London Stock Exchange, which has experienced the departure of several major companies over the past few years. The trend started with Randgold’s delisting following its merger with Barrick Gold in 2018 and continued with the exit of Russian gold miners amid geopolitical tensions.
